A summary balance sheet for the Sissy,Jody,and Buffy partnership on December 31,2011 is shown below.Partners Sissy,Jody,and Buffy allocate profit and loss in their respective ratios of 3:4:6.The partnership agreed to pay Buffy $360,000 for her partnership interest upon her retirement from the partnership on January 1,2012.Any payments exceeding Buffy's capital balance are treated as a bonus from partners Sissy and Jody.
Required:
Prepare the journal entry to reflect Buffy's retirement.

Question

A summary balance sheet for the Sissy,Jody,and Buffy partnership on December 31,2011 is shown below.Partners Sissy,Jody,and Buffy allocate profit and loss in their respective ratios of 3:4:6.The partnership agreed to pay Buffy $360,000 for her partnership interest upon her retirement from the partnership on January 1,2012.Any payments exceeding Buffy's capital balance are treated as a bonus from partners Sissy and Jody.
  Required:
Prepare the journal entry to reflect Buffy's retirement.

Quizplus · Accepted Answer

The Answer of A summary balance sheet for the Sissy,Jody,and Buffy partnership on December 31,2011 is shown below.Partners Sissy,Jody,and Buffy allocate profit and loss in their respective ratios of 3:4:6.The partnership agreed to pay Buffy $360,000 for her partnership interest upon her retirement from the partnership on January 1,2012.Any payments exceeding Buffy's capital balance are treated as a bonus from partners Sissy and Jody.
  Required:
Prepare the journal entry to reflect Buffy's retirement.

A Summary Balance Sheet for the Sissy,Jody,and Buffy Partnership on December